Waterfront regeneration back on track as firm enjoys profits return

CITY chiefs today pledged to press ahead with the development of Edinburgh's Waterfront, after returning the council-owned regeneration firm back to profit.

It emerged today that the city council has lined up a clutch of deals that will see development get under way on land owned by Waterfront Edinburgh Limited (WEL), the Granton regeneration firm that is now wholly owned by the local authority after a bail-out saw it buy all of its assets last year.

A huge hotel, retail units and hundreds of homes are being lined up for the sites that are still currently owned by WEL.

The details were revealed today after it emerged that the council had returned WEL to a 876,725 profit last year, compared to a 13 million loss a year earlier. Last year's bail-out saw the council acquire the company's 7.5m of assets as part of a wider 70m rescue of its struggling "arms-length" property companies.

City leaders said that their new "hands-on" role can ensure that development continues, despite the tough economic climate.

Councillor Tom Buchanan, the city's economic development leader, said: "The council has to look at methods of continuing regeneration and taking a more proactive role. That is why we were taking back the assets at the Waterfront and it gives us a hands-on role in the regeneration of the area.

He added: "There are currently a number of opportunities to improve leisure, housing and the wider regeneration of the area, while continuing to also go ahead with projects like the Promenade."

It is understood that council chiefs are closing in on a deal that will see a developer snap up a 2.4-acre site on the corner of West Harbour Road and Waterfront Avenue. The site already has outline planning consent for a 200-bed hotel, convenience store and 42 flats and it is thought that the bidder intends to submit an application for detailed consent based on the outline permission.

There are also "advanced negotiations" taking place to sell on the former Madelvic car factory on Granton Park Avenue, the UK's oldest car factory, to a developer that will take forward a wider project of more than 100 homes.

Talks are also taking place that could lead to the former walled garden of Caroline Park House to be developed as a residential scheme of more than 50 homes.

A series of other smaller projects including a rockery, picnic seating areas, new plants, litter bins and new pathways, are also being proposed across the Granton area.David Powrie, secretary of WEL, said: "It is the intention to continue to ensure that the company remains the catalyst to deliver the whole of the Granton redevelopment by encouraging economic development, job creation and creating a sense of place, whilst ensuring social inclusion with existing communities."